They report that all pension multifunds are posting losses so far in September | Economy

A series of global factors are influencing the results. At the national level, the signs of an economic slowdown, the political uncertainty after the triumph of the Rejection and the cut in the country’s credit rating stand out, said the consulting firm Ciedess.

so far in september all the pension multifunds are posting losses.

According to an analysis by the consulting firm Ciedess, this setback is related to the negative results in local and foreign equity instruments, inflationary pressures due to the pandemic, the escalation of the Russia-Ukraine conflict and the fears of a world recession in 2023.

The riskiest funds, A and B, register variations of -0.51% and -0.33% respectively; Meanwhile he fund C, of ​​moderate risk, presents a fall of -0.47%.

On the other hand, the most conservative funds, D and E, obtain losses of -0.48% and -0.53% each.

In parallel, So far in 2022 (January to September), negative results have been seen for all multifunds, except for E.

Funds A and B, register drops of -15.90% and -12.63% respectively, while the background C presents a variation of -9.24%.

The more conservative funds obtain mixed results, with a drop of -3.45% in D and an increase of 1.57% in E.

The reasons for the losses so far in September

According to Ciedess, the result of Funds A and B is explained by the variation in the prices of variable income instrumentswhere negative results are observed in the main international indices, only being partially offset by the dollar rise; while at the local level there is a setback.

“Externally, the markets have been affected by the pandemic (especially China), the escalation in the tensions of the Russia-Ukraine conflict and the historical rate hikes in most countries (those promoted by the Fed and the ECB stand out, with more restrictive tones in the future), all this within the framework of an imminent global recession, ”said the consultant.

Likewise, “At the national level, the signs of an economic slowdown, the political uncertainty after the triumph of Rejection and the cut in the country’s credit rating stand out”.

Meanwhile, the consultant maintained that the performance of funds C, D and E is mainly due to the results of investments in local debt securities and foreign fixed income instruments.

“There is a positive contribution from international fixed income; while at the local level there is a rise in the interest rates of fixed income instruments, negatively impacting conservative funds through capital losses. The latter would be explained mainly by persistent inflationary pressures and the drop in Chile’s credit rating”, he pointed out.

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